REACT: SHAPING THE COUNTER-ATTACK AGAINST THE INTERNATIONAL TRADE IN FAKE GOODS
The international trade in counterfeit goods must be reduced in order to protect consumers against dangerous fake products as well as legitimate business against the unfair competition of counterfeit traders.
High penalties, effective and swift measures are important but no longer sufficient to fight this growing phenomenon. The involvement and liability of the service providers to the counterfeit trader is required as well as the possibility to intervene against fake goods passing EU borders in transit. The businesses that carry, ship and provide a platform to counterfeit trade should protect themselves against the negative consequences of counterfeit trade and, at the same time, support rights owners and enforcement authorities to fight counterfeiting.
Counterfeiting of goods is a serious crime that has many negative consequences. The capacity of an economy to create and innovate is reduced, consumers are exposed to danger, the viability of commercial enterprises is undermined and there is a disincentive to inward investment and job creation. Furthermore, government revenues are reduced.
REACT
In response to the damage being caused by this illicit trade a number of rights holders grouped themselves together and established a business association — REACT. It comprises 180 members drawn from all the industry sectors affected by counterfeiting and assists them to share ideas, best practice and manage the growing problem. Amsterdam-based, it enjoys a network of branch offices, agencies and partnership agreements all over Europe. Members of REACT can rely on a practical anti-counterfeiting service complementing their internal anti-counterfeiting strategies.
Combating counterfeiting can be expensive
REACT is able to succeed in fighting the trade in counterfeiting in the most efficient and cost-effective manner and, hence, it has become the world’s number one service provider for rights owners. It provides an inclusive package of legal and practical services and continuously strives to maintain the lowest possible cost and fee structure whilst maintaining a high quality in delivering legal actions; investigations; monitoring of markets, events and the internet; storage; recycling; and destruction of fake goods in an environmentally friendly manner.
The counterfeit problem is changing rapidly and is being facilitated by new digital and IT technologies and the ease of travel and communications. Such developments were not fully anticipated when the Trade Related aspects of Intellectual Property Rights (TRIPS) agreement and the EU regulation 1383/2003, providing border measures to suspend the release of counterfeited goods, were negotiated. We highlight several issues that are currently not sufficiently covered and that deserve a high priority:
• Sharpening accountability
Logistics operators, shippers, brokers, storage operators, FTZ operators, ISPs etc are important links in the movement of counterfeit or pirated goods. Improving accountability mechanisms for such operators would strengthen official control over the supply chain and reduce the movement of counterfeit products.
• Goods in transit
TRIPS and the EU Regulation 1383/2003 clearly tried to establish a regime to take actions against fake goods in transit. Without such a mechanism there are many ways counterfeit traders can manipulate and avoid existing customs controls and disseminate their illegal goods all over the world. We strongly recommend as a minimum operating a system whereby the counterfeit traders or their representatives have to provide evidence that their goods are not infringing intellectual property rights in the country named as the ultimate destination.
